Defeat of Production Deduction Reduction Saves Nearly $5 million in Additional Income Tax Payments

Author: Shawn Shouldice Date: July 06, 2010

Legislative leaders in the House of Representatives proposed in the miscellaneous tax bill (H.783), to disallow the pass through of the entire federal domestic manufacturing deduction which would have impacted manufacturing, agriculture and many business entities.

Current tax law allows for a tax reduction of up to 9% for domestic production costs (IRS Section 199) but legislators proposed amendments that would have scaled back that deduction to 6%, making the credit less beneficial to small businesses and manufacturers. This deduction is designed to help protect and grow manufacturing, agriculture and other productive employment in Vermont.


blog comments powered by Disqus

Subscribe For Free News And Tips

Enter your email to get FREE small business insights. Learn more


Do you use a CRM to manage customer information?

Yes, I use a CRM. - ( 216 votes )

CRM? I use Excel. - ( 115 votes )

Excel? I use paper and pencil! - ( 38 votes )

No, I don't use any CRM system. - ( 145 votes )